Key Post Maximising your chances of getting a tracker mover product in the future

Brendan Burgess

Founder
Messages
51,911
All the live banks now allow borrowers with tracker mortgages to trade up and to bring the tracker with them for at least 5 years. Even if you have no intention of moving or trading up in the immediate future, you should probably take some steps to maximise your chances of getting such a mortgage if you do want to trade up in the future.

Do not overpay your tracker/Do not pay a lump-sum off it
When you trade up, you will need 10% of the purchase price of the new property. If you have used up your savings to "pay down the negative equity" you will not be able to trade up, even if you meet the affordability criteria.

Don't go into arrears
If you go into arrears, you will probably have to wait for at least two years and maybe five years, before even applying for a mortgage.

This applies to all lenders and not just your mortgage lender.

Don't apply to reschedule your mortgage
If you argue that you can't afford your current repayments, then it will be even more difficult to argue that you can afford higher repayments.

Make sure your current account and credit card is with your mortgage lender
Lenders are more comfortable if they can get a full picture of your finances. If they see that you have had a current account with them for 10 years and that you were never overdrawn, it will probably stand to you.

Don't commit to any long term investment or savings plan
Make sure that all your cash is accessible if you need to move

Don't borrow money for other purposes e.g. an investment property
If you have a mortgage for an investment property, it will reduce the amount you can borrow for your home.

If commission forms a high part of your income, try to restructure your salary
Some jobs have low basics and high commission. Ask your employer to change this so that you get a higher basic and lower commission.

Some points from Liam Ferguson's Key Post
Preparing for a mortgage application

  • Be careful about changing jobs as you may not get a mortgage unless you are at least 6 months in a permanent position
  • Avoid online betting
  • Consider holding off on AVCs
 
Back
Top